Strayer executives said negative publicity and uncertainty regarding proposed regulations surrounding the for-profit education sector in recent months led to the student enrollment decline.
The company's statement echoed cautionary statements on student enrollment from school stock peers such as
Education-providing institutions will also be required to limit student enrollment to those who have high school diplomas or can readily demonstrate their readiness for university-level education. Schools must also comply with what is called the 90:10 rule in fiscal 2012. The rule stipulates that no more than 90% of a for-profit education provider's revenue may be generated from Department of Education's federal student aid program.